Food delivery company Zomato is set to open its initial public offering on July 14 and this will be the 27th public issue in 2021.
It can be considered as the largest IPO to date or till the time Vijay Shekhar Sharma owned Paytm plans to go public.
Through this IPO, Zomato is looking to raise Rs 8,250 crore and offering Rs 72-76 per share with multiples of 195. The Ant Group-backed food ordering platform has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share.
Here are the key points to look ahead of its IPO:
- The Gurugram based startup plans to use the proceeds for organic and inorganic growth and other corporate deals.
- For this IPO, the price band has been fixed at Rs 72-76 per equity share.
- The company’s chief financial officer (CFO) told in a press conference recently that Zomato will have a cash level of Rs 15,000 crore post-issue.
- The total IPO size is Rs 9,375 crore, comprising a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale to the tune of Rs 375 crore by Info Edge (India) Ltd, Zomato said.
- Zomato’s valuation post-IPO on a fully-diluted basis will be Rs 64,365 crore, far more than the other listed companies in the food segment such as Jubilant FoodWorks (market capitalisation of Rs 41,006 crore) and Burger King India (Rs 6,627 crore).
- Zomato’s FY20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) loss was around Rs 2,200 crore.
- In February, Zomato had raised $250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion (around Rs 40,000 crore).